Crypto Markets Plunge to Historic Lows as Cowen Warns of Further Decline

Crypto markets have not been this cheap since 2010, according to Benjamin Cowen, a member of BeInCrypto's Markets Intelligence Council. The total market cap stood at $2.152 trillion on July 31, while the model's fair value sat at $5.737 trillion, leaving crypto 62.49% undervalued.

Cowen argues that because fair value keeps rising over time, the discount could deepen even if prices move sideways. Recent Coldcard hacks and fading retail interest add to the pressure.

Despite the near-term caution, Cowen's cycle framework suggests the end is close. He expects one more leg down in the third quarter due to midterm-year seasonality and rising bond yields.

Cowen also points out that Bitcoin's weakness window opens within weeks. Historically, August and September have been negative months for BTC, with 2022 being a notable example.